Fayetteville Today

The Fayetteville Public Works Commission voted May 27 to allocate $8.3 million to help the city balance its budget after COVID-19 caused a decline in business-generated revenues, The Fayetteville Observer reported.

Policymakers projected the city would lose between $8 million and $10 million from lost sales tax and revenue due to the coronavirus pandemic, The Fayetteville Observer reported on May 27. The commission agreed to provide the money from its electric utility funding through FY 2021 to help.

“As we began discussions, some clear guidelines were put out that we all agreed to,” City Councilman Chris Davis told The Fayetteville Observer. “This money is for COVID losses to the city. It is not a wish list or Christmas list or anything of that nature. This is in response to some of the budget impacts we are experiencing at the city level.”

In its vote, the Public Works Commission agreed to transfer $4 million to the city and then advance another $4.3 million that will be paid back interest-free, The Fayetteville Observer reported.

The council, however, still needs to approve the commission's financial assistance, Mayor Mitch Colvin said, The Fayetteville Observer reported. 

“We’ve got to look at the details of what their counterproposal is and see how we move forward from there,” he said, according to The Fayetteville Observer. “We’re very thankful. ... [the Public Works Commission] is good partners with us. They are trying to make adjustments with their budget. We totally understand all of that.”

The mayor said the city originally asked for $11 million, The Fayetteville Observer reported. The council's next meeting is Monday, June 8 at 7 p.m.